When the price level decreases: Group of answer choices The demand for money falls and the interest rate falls Holders of financial assets with fixed money values decrease their spending Holders of financial assets with fixed money values have less purchasing power There is a decrease in consumer spending that is sensitive to changes in interest rates

The correct answer is letter "A": The demand for money falls and the interest rate falls.

Explanation:

When price level decreases individuals purchasing power increases. This scenario causes people to request fewer credits and loans, which diminishes the demand for money. The interest rate falls then to promote loans and private investment with it. As a result, exchange rates drop boosting international commerce, moreover exports.

answer; lags, push the econ below the natural level of output;

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